Human Resource

ManagementRadhika Vandna Gohel

Faculty of Commerce & Management JHBWC

Syllabus

What is HR?

• Human: refer to the skilled workforce in the organization.

• Resource: refer to limited availability or scarce.

• Management: refer to maximize or proper utilization and make best use of limited and a scarce resource.

Introduction• Behind the production of every product or service there is

human mind, effort and man hours (working hours) no product or service can be produced without help of human being. Human being is the fundamental resource for making or constructing anything. Today many experts claim that machines and technology are replacing human resource and minimizing their role or effort. But even machines and technology have been build by the human aid and besides companies have been continuously in search for talented, skilled and qualified professionals to further develop latest machines and technology, which again have to be controlled or used by

humans to bring out products

Meaning of HRM

Human Resource Management (HRM) is the term used to describe formal systems devised for the management of people within an organization. The responsibilities of a human resource manager fall into three major areas: staffing, employee compensation and benefits, and defining/designing work.

Concept • HRM may be defined as set of policies, practices and programs

designed to maximize both the personal and organizational goals.

• Acc. To Edwin, HRM is “the planning , organizing, directing and controlling of the procurement, development, compensation, integration, maintenance and reproduction of human resources to the end that individual, organizational and societal objectives are accomplished.

Nature of HRM1. Comprehensive

Function2. People-oriented3. Action oriented4. Individual oriented5. Development oriented6. Pervasive function7. Continuous function

8. Future oriented9. Challenging Function9. Science as well as art10. Staff function11. Young discipline12. Interdisciplinary13. Nervous system

Functions of HRMFunctions are of two types (1) managerial functions (2) operating function

1. Procurement Function- Job analysis- Human resource planning- Recruitment- Selection- Placement- Induction or orientation

Cont.2. Development Function

- Performance & Potential Appraisal- Training- Executive Development- Career Planning and Development

3. Compensation Function- Job evaluation- Wage & salary Administration- Bonus- 4. Integration Function- 5. Maintenance Function

HRM & Personnel Management

• Many management students and layman, think that the two terms are synonymous but, the fact is that the modern HRM has completely replaced PM. So, in this article, we are going to throw light on the meaning and differences between  Personnel Management and Human Resource Management.

Cont.• Definition of Personnel Management:

Personnel Management is a part of management that deals with the recruitment, hiring, staffing, development and compensation of the workforce and their relation with the organization to achieve the organizational objectives. The primary functions of the personnel management are divided  into two categories:

1. Operative Functions: The activities that are concerned with procurement, development, compensation, job evaluation, employee welfare, utilization, maintenance and collective bargaining.

Cont.2. Managerial Function: Planning, Organizing, Directing,

Motivation, Control and Coordination are the basic managerial activities performed by Personnel Management.

• From the last two decades, as the development of technology has taken place and the humans are replaced by machines. Similarly, this branch of management has also been outdated by Human Resource Management.

Key Differences Between Personnel Management and Human Resource

Management1. The part of management that deals with the work force within

the enterprise is known as Personnel Management. The branch of management, which focuses on the best possible use of the enterprise’s man power is known as Human Resource Management.

2. Personnel Management treats workers as tools or machines whereas Human Resource Management treats it as an important asset of the organization.

3. Human Resource Management is the advanced version of Personnel Management.

4. 4. Decision Making is slow in Personnel Management, but the same is

comparatively fast in HumanResource Management.

Cont.5. In Personnel Management there is a piecemeal distribution of

initiatives. However, integrated distribution of initiatives is there in Human Resource Management.

6. In Personnel Management, the basis of job design is the division of work while, in the case of Human Resource Management, employees are divided into groups or teams for performing any task.

7. In PM, the negotiations are based on collective bargaining with the union leader. Conversely, in HRM, there is no need for collective bargaining as individual contracts exists with each employee.

8. 8. In PM, the pay is based on job evaluation. Unlike HRM, where the basis of pay is

performance evaluation.

Significance of Human Resource Management

1. Significance for an enterprise– Attracting and retaining the required talent through effective human

resource planning, recruitment, selection, placement , orientation compensation and promotion policies.

– Developing the necessary skills and right attitudes among the employees through training, development, performance appraisal etc.

– Securing willing cooperation of employees through motivation , participation., grievance handling etc.

– Utilizing effectively the available human resources.– Ensuring that the enterprise will have in future a team of competen and

dedicated emplyees.

Cont.2. Professional significance:

Effective management of HR helps to improve the quality of work life. It permits team work among employees by providing a healthy working environment. It contributes to professional growth in following ways:– Providing maximum opportunities– Maintaining healthy relationship– Allocating work properly

Cont.3. Social significance:

Sound HRM has great significance for the society. It helps to enhance the dignity of labor in the following way.

– Providing suitable employment– Balance between jobs available and jobseekers– Conservation of physical and mental health by eliminating waste of human

resources.

Cont.4. National significance:

HR plays a vital role in development of nation.For effective utilization of a nation’s natural, physical and financial resources require an efficient and commited man power.the level of development in a country depends primarirly on the skills, attitudes and values of its HR.effective management of HR helps to speed up the process of economic growth which in turn leads to higher standards of

living and fuller employment.

HR Philosophy

HR Policies

Training & Development

Job analysis and design

Performance Management

& Compensatio

n

Labor & Employee Relations

Recruitment & selection

Concept of SHRM• Before we try to explain the meaning of strategic HRM, let

us first define the terms ‘strategy’ and ‘strategic management’. The term ‘strategy’ is widely used in and presupposes importance. In the words of the Oxford Concise Dictionary, strategy means ‘generalship’. Thus, strategy is associated with the long-term decisions taken at the top of the enterprise. The original literary meaning of strategy is ‘the art and science of directing military forces’.

Cont.• The success of an organisation depends on the people

therein. This means how they are ac quired, developed, motivated and retained in the organisation play an important role in the organisational success. Then this presupposes an integral approach toward human resource functions and overall business functions of an organisation. Thus, strategic HRM means a strategic look at HR functions in line with the business functions of an organisation.

Cont.• Strategic HRM, therefore, is concerned with the following: • 1. Analyse the opportunities and threats existing in the

external environment.• 2. Formulate strategies that will match the organisation’s

(internal) strengths and weaknesses with environmental (external) threats and opportunities. In other words, make a SWOT analysis of organisation.

• 3. Implement the strategies so formulated.• 4. Evaluate and control activities to ensure that

organisation’s objectives are duly achieved.

Human Resource Inventory

• Human Resource Inventory, also known as the skills inventory comprehensively lists down the basic information on all the employees, like their education, experience, skills, age, sex, salary related data, job preference and special achievements. It is a vital tool used in HR planning and policy making.

HR Research• Research is also used to evaluate HR practices and

performance. Research is a systematic and scientific process of collecting information, analyzing the information and drawing conclusions for decision-making. At times the research may be advanced, relying on sophisticated designs and statistics. But whether information is rigorous or not, research seeks to improve the performance. There are two kinds of research – academic and applied. Academic research seeks answers to contribute to the existing body of knowledge. Application – oriented research efforts are called applied research.

HR Accounting• Human resource accounting is the process of identifying

and reporting investments made in the human resources of an organization that are presently unaccounted for in the conventional accounting practices. It is an extension of standard accounting principles.

HR Audit• A Human Resources Audit is a comprehensive method (or

means) to review current human resources policies, procedures, documentation and systems to identify needs for improvement and enhancement of the HR function as well as to assess compliance with ever-changing rules and regulations.